This invention relates generally to adapting an electronic transaction device to conventional point of sale terminals. In particular, the invention relates to an adapter that dynamically emulates a magnetic stripe of a conventional plastic card, metallic contacts of a smart card, or both.
The subscriber base for wireless telephones is already enormously large and is forecast to grow rapidly. Some estimates put current wireless telephone subscribers at 400 million users globally, and telephone manufacturers estimate that one billion wireless telephones will be in use by 2004. Wireless telephones typically have a compact housing with microprocessor, memory, input and output circuits and a battery. Wireless telephones also include dialing, transmitting and receiving circuitry. There are various embodiments of wireless telephones, including analog (AMPS), Global Standard for Mobile Communication (GSM), code division multiple access (CDMA) and time division multiple access (TDMA). In addition to basic communications circuitry, wireless telephone manufacturers are adding features normally found on electronic organizers, such as date books, address books, and infra-red communications devices.
Personal Digital Assistants (PDAs) are also becoming very popular. PDAs are a form of handheld electronic organizer, typically having date books, address books, to-do lists, memo pads, and other features. PDAs typically include a compact housing with a hardware environment consisting of a microprocessor, memory, input and output circuits and a battery. Many PDAs include metallic contacts and infra-red circuitry for input and output circuitry. Various operating systems are available, as are various software applications. Operating systems for PDAs include Palm OS, Windows CE, and other operating systems. Some PDAs are integrating wireless communications.
Another type of handheld electronic device is a Universal Electronic Transaction Card (xe2x80x9cUET Cardxe2x80x9d). UET Cards have been proposed to receive, store, and process information relating to a plurality of different accounts, thereby consolidating numerous cards into one card. See, for example, U.S. Pat. Nos. 5,590,038 and 5,884,271, the disclosures of which are incorporated by reference. In one example of a Universal Electronic Transaction Card, the card stores electronic images of the plastic cards which it replaces, and allows a user to conduct a transaction at a Point of Sale Terminal (POS).
It is contemplated that these handheld devices will become integrated to one degree or another. For example, UET Cards have been proposed with many features of currently available PDAs. See, for example, the previously mentioned U.S. Pat. Nos. 5,590,038 and 5,884,271. Also, as mentioned above, some wireless telephones are integrating PDA type functions, and some PDAs are integrating wireless communications. Additionally, PDAs, wireless telephones and other handheld computing devices may be programmed or otherwise configured and used to conduct electronic transactions. UET Cards, and computing devices programmed to perform electronic transactions, such as PDAs and wireless telephones, are generally referred to herein as xe2x80x9celectronic transaction devices.xe2x80x9d
Generally, an electronic transaction device may be a handheld device configured to allow a user to electronically emulate some or all of various aspects of a traditional wallet containing an assortment of plastic cards, cash and cash equivalents. One of the advantages of an electronic transaction device is the fact that the device allows the storage and use of multiple plastic cardsxe2x80x94multiple credit and debit cards, identification cards, multiple membership and affinity group cards etc. Existing credit card (and other plastic card) images may be electronically stored and reproduced on the electronic transaction device display. Receipts may also be stored, eliminating paper receipts. Electronic transaction devices may include additional features, such as wireless telephony and PDA features.
Another large installed base of equipment comprises Point of Sales (POS) terminals. POS terminals include terminals having plastic card magnetic stripe readers and terminals having smart card readers.
Plastic cards having a magnetic stripe are known to be used with POS terminals having magnetic stripe readers. Relevant industry standards for magnetic stripe cards include, but are not necessarily limited to, ISO 7810, ISO 7811, and ISO 7813. Some examples are plastic Credit Cards, Bankxe2x80x94Debit and Check Cards, Automatic Teller Machine Cards, Membership Cards, Business or Access Cards, Identification Cards, College Identification Cards, Airline Cards, and others. The magnetic stripe generally includes pre-recorded information, which may identify the card issuer, account number, identity of an authorized card user, or other relevant information. Typically, the magnetic stripe is used to establish the identity of the cardholder or enable a transaction. Such transactions may or may not be monetary in nature.
Another type of card is a xe2x80x9csmart card.xe2x80x9d Smart cards are available with metallic contacts, without metallic contacts, and as hybrid cards. The standard for contact-type smart cards is ISO 7816. Contactless-type smart cards will be governed by the ISO 14443 standard. xe2x80x9cSmart cards,xe2x80x9d as used herein, refers to cards adhering to one or both of these standards.
A typical POS may include a card reader, such as a card reader configured to read magnetic stripes conforming to ISO 7810, ISO 7811, and ISO 7813. By xe2x80x9cswipingxe2x80x9d a magnetic stripe card through the card reader, the card reader establishes the account number and identity of the cardholder. Such a POS reader may then communicate with the issuer of the card to determine the validity of the account and consequently approve or deny the transaction.
POS card readers are not limited to sales transactions. In offices, manufacturing facilities, or business environments, for example, employers may issue plastic identification cards to employees with a magnetic stripe on the card. This enables the readers to establish the identity of the cardholder, unlock doors or gates, log in and log out the entry and exit times respectively and in certain cases compute wages. In a school, college or university, an identification card with the magnetic stripe allows students to access laboratories, libraries, and other campus facilities, store cash values for transactions on campus. In these situations, the magnetic stripe on the plastic card is an important component which enables the card to function in the targeted environment.
With an electronic transaction device, one possible way of using it at a POS for performing a transaction (depending on the environment in which the device is being used, the transaction may or may not be monetary in nature) is to transmit information through an infrared or proximity RF link or by wireless or wired telephone link. PDA""s, wireless telephones, and UET Cards may be equipped with an infrared transceiver. Wireless telephones of course, include wireless telephone communications circuitry. However, sending information to and receiving information from a POS or terminal equipment (TE) would require the POS (or TE) to also be equipped with a corresponding transceiver, along with the supporting hardware, software and training for the personnel handling the equipment.
Currently existing POS terminals comprise an extensive infrastructure of card readers, both magnetic and smart card, and the supporting networks and protocols for communication. One potential hurdle for the widespread adoption of electronic transaction devices such as Universal Electronic Transaction Cards and similarly configured PDA""s and wireless telephones is compatibility with the existing infrastructure of magnetic card readers. For example, the prospect of including a pre-recorded magnetic stripe dedicated to one account on an electronic transaction device may impair one of the benefits of the electronic transaction device, namely, the ability to conduct transactions using a plurality of accounts. Also, retrofitting the established pre-existing base of POS terminals with a new communication port such as infra-red or radio frequency communication, would require both hardware and software modifications. Also, the introduction of such modifications may necessitate re-training of personnel that operate POS terminals. The cost of such modification is not trivial, considering the number and variety of POS terminals, such as grocery store registers, automatic teller machines, and pay-at-the-pump filling stations, to name a few.
What is provided is an adapter for use with a conventional POS card reader to interface with PDA""s, Wireless Phones, and other Handheld devices, through Infrared or RF media, such that signals received from the devices can be converted to conventional magnetic stripe and/or smart card format, as required by the conventional POS card readers. The adapter includes a housing, including at least a reader-insertable portion capable of being inserted in the card reader, a receive circuit in the housing, a processor in the housing connected to the receive circuit; and a point of sale interface in the reader insertable portion of the housing and connected to the processor. The housing may be approximately the size of a conventional credit card and may be fully reader-insertable.
The point of sale interface comprises a magnetic stripe emulator, a smart card emulator, or both. The magnetic stripe emulator may comprise at least one electromagnet. Two electromagnets may be used to emulate two tracks of a conventional magnetic card stripe. The receive circuit may comprise an infra-red receiver, a radio-frequency receiver, or other suitable circuit. The adapter may further include a transmit circuit, wherein the receive circuit and the transmit circuit include a transceiver. The adapter may further include a data buffer connected to the processor, the data buffer configured to purge data after a predetermined period of time or after a predetermined number of data transfer operations.
A method of using an adapter of the present invention with a point of sale card reader may include the steps of selecting a card on an electronic transaction device, placing the adapter in the card reader, transmitting information corresponding to the selected card from the electronic transaction device to the adapter, the adapter converting the information corresponding to the selected card to a format readable by the card reader, and the card reader reading the converted information.
The step of converting the information corresponding to the selected card to a format readable by the card reader may further comprise emulating a magnetic stripe or emulating a smart card. The step of emulating a magnetic stripe may further comprise generating electromagnetic signals. The step of emulating a magnetic stripe may also further comprise receiving the information corresponding to the selected card, formatting the information corresponding to the selected card to conform with magnetic stripe conventions, and dynamically writing the formatted information to an electromagnet.
The step of placing the adapter in the card reader may occur before the step of transmitting information. Alternatively, the step of transmitting information may occur before placing the adapter in the card reader, and further comprises the step of buffering the information corresponding to the selected card in the adapter. The buffered information may be purged after the step of reading the buffered information at the card reader.
In another embodiment, an electronic transaction device is adapted for use with point of sale card readers, and includes a housing, adapted to fit in a pocket or purse, the housing including at least a reader-insertable portion capable of being inserted in the card reader, a processor, enclosed in the housing, adapted to process account information relating to at least one service institution account associated with a user of the electronic transaction device, a display, connected to the processor and adapted to display the account information, a memory, connected to the processor and adapted to store the account information; and a point of sale interface in the reader insertable portion of the housing, connected to the processor and adapted to transmit the account information to a point of sale card reader. The point of sale interface may comprise a magnetic stripe emulator, a smart card emulator, or both.